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Al McGuinness

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About Al McGuinness

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  • Location
    Chelmsford
  • Areas I invest in
    Nationally
  • Property investment interests
    - HMOs
    - conversions
    - flips
    - overthinking KPIs and analytics

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  1. I have a runaway tenant who is prepared to go to court over rent arrears. He and his legal counsel concede that; - he lived in the property for X amount of time - he paid X amount of rent for many consecutive months and therefore acknowledges a contract - there is legitimate correspondence between us relating to it (Note for future - check that their signature on the AST matches that on their driving license) He is still however prepared to take this to court and pay legal fees to defend the case - defence he has put up so far consists of the fact there was mould in his room (I told him how to remedy, and cleaning is his responsibility), the fact I didn't bring a case til 1 year after (it's within the statute of limitations, I reminded him 3 times, and he said he'd call the police for harassment), the AST signature isn't his (false but regardless, a legal contract was created when he moved in). He has 'witnesses' but to what I'm not sure. How they could have witnessed the presence of mould or that he didn't sign an AST is legally dubious and quite beyond me. In terms of settlement, he is prepared to settle for a full and final £525. He owes £2500, but with a no-win-no-fee solicitor agreement these 2 figures become £462 now or £1750 in ~1 year (solicitor estimation of court date is next year). To try and assess this, I've used Net Present Value, which I am familiar with but a novice in using. Not sure if cell C11 is correct, but let me know if not. I've used 8% as the discount rate benchmarking against P2P returns. What do you think?
  2. @graham harvey I fully retract my statement about Robert Kiyosaki, and would put all of his books in the 'read the online summary instread' category. Have just finished Rich Dad's Guide to Investing - what an absolute waste of time. He was just plugging all other products and regurgitating old content with little of anything of value.
  3. @simon allen have you come across workarounds for the 6 month rule where the business model is quick flips to owner occupiers? I thought that prospective buyers could use a broker/lender that can get round it as recommended by the seller/investor but this may seem dodgy to some, or the estate agent's broker could be forced to find lenders if they want the investor's repeat business.
  4. also just found: https://www.listennotes.com/podcasts/money-for-the-rest-of-us-j-david-stein-laEjMfJV-k1/ ----- "A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager." Podcast – Goliath Sourcing Academy
  5. Just collecting resources on sourcing when I came across this thread; these might help plus some bits I've personally found valuable - Investing/Financial Literacy: anything by Robert Kiyosaki - I see you have already come across Rich Dad Poor Dad Economics by Timothy Taylor - Audible or The Great Courses (which have an outstanding breadth of audio-courses by leading professors). --- I think economics, finance and project management should be the bedrock of anyone's investing education. Also, books by people like professors are more serious with less fluff (Rich Dad Poor Dad could be half as long without the stories), and are valuable in the sense that they are what you'd find on a university course syllabus for corporate professionals. N.B. Be wary of some of the 'classics', I'd recommend reading summaries online first which will give you the most important points. I've wasted hours finishing books that some rave about but came to nothing - the 10X Rule being a prime example. It seems being a bestseller isn't a mark of quality these days. Sourcing: Mark I’Anson – Dominate Your Ground – Audible or Hardcopy Podcast - Property Sourcing Profits – David Siegler Property Tribes – Sourcing Guides YouTube playlist – Arsh Ellahi – Deal Sourcing YouTube - Property Sourcing Tips From Some of the Best in the UK YouTube - How to Setup a SUCCESSFUL Property Sourcing Business | Property Investors Podcast #20 YouTube – Simon Zutshi on deal sourcing YouTube – Simon Zutshi - Sourcing Deals with Landlord Letters Property Geek Podcast Episode 58 – How to Source Property Deals Goliath Sourcing Academy – sourcing articles page
  6. For anyone reading this in future, the conclusion is not to form a holding company at this point in time for the following reasons: there is no drawback to moving ownership of shares from your own name into a holding company in future - no extra tax is incurred via this change of ownership due to 'substantial shareholding exemption' - https://www.taxation.co.uk/articles/2018-05-15-338003-advice-substantial-shareholdings-exemption My existing limited company which holds property assets is best off left outside the holding company structure at least for now, to avoid problems with the existing mortgage lender of accountability for the mortgage. (As holding companies can be used to add layers of protection and limit risk it might incur some pushback from them, so cross this bridge when I come to it in future) Therefore the only asset held by the new holding company would be my half of the JV company, I.E. 1 holding company owning 50% of 1 subsidiary, which offers little benefit as profits/losses can't be offset against other subsidiaries nor does just 50% shareholding qualify for such benefits - the minimum is 51% I believe similar to the point above, there is no benefit in my existing limited company owning my half of the new JV company as it is better for holding companies to purely own subsidiaries and gets complicated when they own other assets.
  7. @debbie franklin interesting point, thank you. Am I right to assume then that the rates and/or fees for lenders happy with holding company structures more than offset the tax benefits of keeping that structure?
  8. Predicament - have 1 LTD company owning BTLs and looking to start a 2nd LTD for flips - is it more beneficial to: A ) create a holding company that would own my shares in the BTL company and flip company (total - 3 LTDs) B ) or simply have the BTL company own the shares of the flip company (total - 2 LTDs) both seem to have attractions in terms of simplicity, but is it complicated for a company to own property assets and also own shares in another company? Have asked my accountant but they are unfamiliar with all of this so looking for other opinions...
  9. @Mortgage_tom your setup sounds ideal and is a fool proof solution, the only downside for me being distance and cost (or, just being tight ) as first I'll be in Asia and then Australia and onto New Zealand @kent614 this is a possibility but given how difficult it is dealing with solicitors that live down the road from you and amplifying this by throwing in a different language and the potential for international post to get lost I decided to discount this option to save my sanity. Would be more feasible if I knew I was going to be in an English-speaking country at the time but if we do achieve volumes of 1+ purchases a month this would regrettably tie me down location wise
  10. Is it possible for nonresidents to secure finance in LTD structures without having personal guarantees witnessed and signed? After 10 years of procrastinating on finally going to spend some of my rental income and travel Asia, however this presents a problem when trying to maintain growth as the funding partner of JV SPV for flips – as: anyone with 25%+ shareholding is required to have a personal guarantee witnessed and signed power of attorney not accepted by some lenders, preventing someone I authorise to fulfil this role even if I am a creditor of the company, I will be brought back into the picture when answering the 'source of funds' question on the finance application unless I want to travel back to the UK to have personal guarantees witnessed and signed, I need to find an authorised person abroad to do this and then send wet ink copies back which could hold things up by weeks or months when its inevitably lost in the post. I'll be gone for longer than 6 months hence non-resident.
  11. Hi Andy I'm just looking into this issue myself as I will be travelling Asia for greater than 6 months making me non-resident – if you are static and in an English-speaking country I don't think it would be any problem at all. You would need to sign a personal guarantee (to give the lender security that you are personally liable for the loan and is not limited to the LTD) which will have to be read to you and witness by a solicitor. Nothing too complicated here in being overseas, you'll just have to find a solicitor that the lender will accept and then post the wet ink copies back most likely. In looking for brokers familiar with this niche I'm currently speaking to the property Hub mortgages team, HD consultants, and there are also the following that might have the answers https://www.expatriates.co.uk/finance/bridging-loans.html https://www.premierexpatmortgages.com/secured-loans best of luck
  12. I'm also in a similar situation at the moment and have thought about this for a lot longer than I needed to, as based on my goals and limitations there is only one course of action: 1. want to grow the pot to eventually sustain a development pipeline while sinking surplus funds into cash flow, without compromising the development side 2. will finally be going travelling in three months time so won't be here to oversee anything 4. opting for less exposure to risk given the current uncertainty 4. the fixed terms on the properties I released equity from in order to get working capital are up in 2022 possibly coinciding with the crash so I'd ideally like to have the same amount of liquid capital by this time solution = split the pot lend to a couple of developers with the security of a first charge + personal guarantee for a 10% return with less risk than investing for equity, choosing developers who are further down the line the me who I can also learn from, build relationships with and if needs be invest for equity when appetite for risk increases, and then set about running my own projects when I am back in the country for good. Pursuing capital growth strategies and then taking a breather when my fixed terms end so the capital in hand is Enough to Shore up the values of the 2 properties that equity was released from feel free to pick holes in this if you spot any
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